Microsoft swoops for Yahoo
February 5, 2008
Microsoft has launched a $44.6 billion takeover bid for Yahoo in an attempt to challenge Google. Microsoft’s chief executive, Steve Ballmer, claimed that combining the two companies would create a stronger challenger to Google in the online advertising market. Hesaid the deal would create a “more efficient” company with total annual synergies of $1 billion, driven by audience critical mass, increased value for advertisers and operational efficiencies.
The move comes just three days after Yahoo announced 1,000 job cuts, and a 23 per cent drop in profits. Yahoo has said it will consider the offer.